Purchasing a property in Monaco can often be a complicated process. Whether you want a mortgage in Monte Carlo or finance in Fontvieille, it’s one of Europe’s trickiest markets to navigate without the help of experienced industry contacts.
I was recently able to secure terms for a married couple who were looking for a mortgage in Monte Carlo, an extremely desirable area in Monaco. Both were Swiss Nationals with no dependents; the husband was in full-time employment whilst the wife was soon to be retired.
The property in question was valued at €7million, and they were looking to borrow just under €5million at a loan to value (LTV) of 70%.
However, my clients were struggling to secure a mortgage. Because of where my clients worked, they were both exempt from income tax and had no discernible residency. Although they both had very strong income, this made it rather challenging for lenders, who will generally look to see pay slips and tax returns when assessing a client’s suitability for a loan.
Fortunately, my relationships with lenders in the region meant I was able to assist with securing terms. My clients were also seeking a very unusual structure for the loan, which I was able to secure terms for. A third of the loan would be on an interest-only basis, a third on a variable rate, and a third on a fixed-rate basis.
Mortgages in Monte Carlo and beyond
If you are looking for a mortgage in Monte Carlo, or indeed any sort of Monaco real estate, we have a wealth of experience in securing the best rates and most favourable terms for high net worth individuals (HNWI). Undoubtedly, Monaco is a complex market when it comes to mortgages.
Everything is individually negotiated; the rate, the assets under management (AUM) and the loan structure. Borrowing against Monaco Property involves large numbers and the structures are often complex so, when you add language, etiquette and principles, you can see why ensuring your purchase is structured correctly is so important and can present challenges.